Common use of Revenues, Expenses and Capital Expenditures Clause in Contracts

Revenues, Expenses and Capital Expenditures. All merchantable oil, liquid hydrocarbon and non-hydrocarbon substances stored in tanks and vessels on the Properties (including any and all line fill owned by Seller or its Affiliates downstream of the custody transfer point) will be gauged to the bottom of the flange by Seller or the operator of the Properties, as applicable, as of the Effective Time, and Seller shall be entitled to the proceeds associated with such oil, liquid hydrocarbon and non-hydrocarbon substances so gauged when sold. Oil, liquid hydrocarbon and non-hydrocarbon substances in treating equipment and separation equipment below pipeline connections as of the Effective Time shall not be considered to be merchantable and shall become the property of Buyer. Seller shall be entitled to all operating revenues and related accounts receivable arising in the ordinary course of business attributable to the Properties and shall be responsible for all operating expenses and related accounts payable (except as provided below) arising in the ordinary course of business attributable to the Properties, in each case to the extent they relate to the period of time prior to the Effective Time. Buyer shall be entitled to all operating revenues and related accounts receivable arising in the ordinary course of business attributable to the Properties and responsible for the payment of all operating expenses and related accounts payable arising in the ordinary course of business attributable to the Properties, in each case to the extent they relate to time after the Effective Time. Notwithstanding anything contained in this Agreement to the contrary, Buyer shall assume and be solely responsible for: (a) any and all suspense funds associated with the Properties, (b) any and all gas imbalances associated with the Properties, and (c) any and all capital expenditures associated with the Properties to the extent said capital expenditures were incurred (or the obligation to incur said costs and expenses was undertaken) by Seller within the period of time six (6) months prior to Closing and exceed Three Million Three Hundred Thousand Dollars and No/100 ($3,300,000). The actual amounts or values associated with the above shall be accounted for in the Final Accounting Settlement.

Revenues, Expenses and Capital Expenditures. All merchantable oil, ------------------------------------------- liquid hydrocarbon and non-hydrocarbon substances stored in tanks and vessels on the Properties (including any and all line fill owned by Seller or its Affiliates downstream of the custody transfer point) will be gauged to the bottom of the flange by Seller or the operator of the Properties, as applicable, as of the Effective Time, and Seller shall be entitled to the proceeds associated with such oil, liquid hydrocarbon and non-hydrocarbon substances so gauged when sold. Oil, liquid hydrocarbon and non-hydrocarbon substances in treating equipment and separation equipment below pipeline connections as of the Effective Time shall not be considered to be merchantable and shall become the property of Buyer. Seller shall be entitled to all operating revenues and related accounts receivable arising in the ordinary course of business attributable to the Properties and shall be responsible for all operating expenses and related accounts payable (except as provided below) arising in the ordinary course of business attributable to the Properties, in each case to the extent they relate to the period of time prior to the Effective Time. Buyer shall be entitled to all operating revenues and related accounts receivable arising in the ordinary course of business attributable to the Properties and responsible for the payment of all operating expenses and related accounts payable arising in the ordinary course of business attributable to the Properties, in each case to the extent they relate to time after the Effective Time. Notwithstanding anything contained in this Agreement to the contrary, Buyer shall assume and be solely responsible for: (a) any and all suspense funds associated with the Properties, (b) any and all gas imbalances associated with the Properties, including without limitation all rights related to underproduction, if any, and (cb) any and all capital expenditures (i.e., costs of xxxxx, production --- equipment, facilities (which also includes casing, tubing, tank batteries, flow lines and separators), and land and building acquisitions) associated with the Properties to the extent said capital expenditures were incurred (or the obligation to incur said costs and expenses capital expenditures was undertaken) by Seller within the period of time six (6) months prior to Closing and exceed Three Million Three Hundred Thousand Dollars and No/100 one percent ($3,300,000)1%) of the unadjusted Purchase Price. The actual amounts or values associated with the above shall be accounted for in the Final Accounting Settlement.

Revenues, Expenses and Capital Expenditures. All merchantable oil, oil and natural gas liquid hydrocarbon and non-hydrocarbon substances hydrocarbons stored in tanks and vessels on the Properties (including any and all line fill owned by Seller or its Affiliates downstream of the custody transfer point) will be gauged to the bottom of the flange by Seller or the operator of the Properties, as applicable, Properties as of the Effective Time, and Seller shall be entitled to the proceeds associated with of such oil, oil and natural gas liquid hydrocarbon and non-hydrocarbon substances hydrocarbons so gauged when sold. Oil, Buyer shall be entitled to witness said tank gauging. These proceeds shall be settled in the accounting settlement described below. Oil and other liquid hydrocarbon and non-hydrocarbon substances hydrocarbons in treating equipment, separation equipment and separation equipment tanks below pipeline connections as of the Effective Time shall not be considered to be merchantable and shall become the property of Buyer. All revenues attributable to the operation of the Properties prior to the Effective Time shall be owned by and for the account of Seller. Seller shall be entitled to all operating revenues and related accounts receivable arising in the ordinary course of business attributable to the Properties and shall be responsible for all operating expenses and related accounts payable (except as provided below) arising in the ordinary course of business attributable to the Properties, in each case to the extent they relate to the period of time prior to the Effective Time. Buyer shall be entitled to all operating revenues and related accounts receivable arising in the ordinary course of business attributable to the Properties and responsible for the payment of all operating expenses and related accounts payable arising in the ordinary course of business attributable to the Properties, in each case to the extent they relate to time after the Effective Time. Notwithstanding anything contained in this Agreement to the contrary, Buyer shall assume and be solely responsible for: (a) any and all suspense funds associated with the Properties, (b) any and all gas imbalances associated with the Properties, and (c) any and all capital expenditures associated with the Properties to the extent said capital expenditures were incurred (or the obligation to incur said costs and expenses was undertaken) by Seller within the period of time six (6) months prior to Closing and exceed Three Million Three Hundred Thousand Dollars and No/100 ($3,300,000). The actual amounts or values associated with the above shall be accounted for in the Final Accounting Settlement. Buyer shall assume Seller's suspense funds associated with the acquired Properties as of the Effective Time, and these funds shall be accounted for in the Final Accounting Settlement.

Revenues, Expenses and Capital Expenditures. All merchantable oil, oil and natural gas liquid hydrocarbon and non-hydrocarbon substances hydrocarbons stored in tanks and vessels on the Properties (including any and all line fill owned by Seller or its Affiliates downstream of the custody transfer point) will be gauged to the bottom of the flange by Seller or the operator of the Properties, as applicable, Properties as of the Effective Time, and Seller shall be entitled to the proceeds associated with of such oil, oil and natural gas liquid hydrocarbon and non-hydrocarbon substances hydrocarbons so gauged when sold. Oil, Seller shall notify Buyer in advance of gauging the tanks and Buyer shall be entitled to witness said tank gauging. Oil and other liquid hydrocarbon and non-hydrocarbon substances hydrocarbons in treating equipment, separation equipment and separation equipment tanks below pipeline connections as of the Effective Time shall not be considered to be merchantable and shall become the property of Buyer. All revenues attributable to the operation of the Properties prior to the Effective Time shall be owned by and for the account of Seller. Seller shall be entitled to all operating revenues and related accounts receivable arising in the ordinary course of business attributable to the Properties and shall be responsible for all operating expenses and related accounts payable (except as provided below) arising in the ordinary course of business attributable to the Properties, in each case to the extent they relate to the period of time prior to the Effective Time. Buyer shall be entitled to all operating revenues and related accounts receivable arising in the ordinary course of business attributable to the Properties and responsible for the payment of all operating expenses and related accounts payable arising in the ordinary course of business attributable to the Properties, in each case to the extent they relate to time after the Effective Time. Notwithstanding anything contained in this Agreement to the contrary, Buyer shall assume and be solely responsible for: (a) any and all suspense funds associated with the Properties, (b) any and all gas imbalances associated with the Properties, and (c) any and all capital expenditures associated with the Properties to the extent said capital expenditures were incurred (or the obligation to incur said costs and expenses was undertaken) by Seller within the period of time six (6) months prior to Closing and exceed Three Million Three Hundred Thousand Dollars and No/100 ($3,300,000). The actual amounts or values associated with the above shall be accounted for in the Final Accounting Settlement. Buyer shall assume Seller's suspense funds associated with the acquired Properties as of the Effective Time, and these funds shall be accounted for in the Final Accounting Settlement.